10 logging firms use a forest to collect timber. Each firm must choose how many trees to cut, 9;. The benefit of cutting a tree is 1000-2G per tree, where G is the total quantity of trees cut in the forest. The marginal cost of cutting a tree is 10G. Firms do not face any fixed costs. The social optimum solves: max(1000-2G)G-10G O O max (1000-2G)G-5G² O max 9, (1000-2G)g₁ - 10g; 9₁ O max (1000-2G)g, -5g?
10 logging firms use a forest to collect timber. Each firm must choose how many trees to cut, 9;. The benefit of cutting a tree is 1000-2G per tree, where G is the total quantity of trees cut in the forest. The marginal cost of cutting a tree is 10G. Firms do not face any fixed costs. The social optimum solves: max(1000-2G)G-10G O O max (1000-2G)G-5G² O max 9, (1000-2G)g₁ - 10g; 9₁ O max (1000-2G)g, -5g?
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
Related questions
Question
6
Transcribed Image Text:10 logging firms use a forest to collect timber. Each firm must choose how many trees to
cut, 9₁. The benefit of cutting a tree is 1000-2G per tree, where G is the total
quantity of trees cut in the forest. The marginal cost of cutting a tree is 100. Firms do not
face any fixed costs. The social optimum solves:
O max (1000-2G)G-10G
O max(1000-2G)G-5G²
O max, (1000-2G)g₁ - 10g;
O max, (1000-2G)g;- 5g7
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Advanced Engineering Mathematics
Advanced Math
ISBN:
9780470458365
Author:
Erwin Kreyszig
Publisher:
Wiley, John & Sons, Incorporated
Numerical Methods for Engineers
Advanced Math
ISBN:
9780073397924
Author:
Steven C. Chapra Dr., Raymond P. Canale
Publisher:
McGraw-Hill Education
Introductory Mathematics for Engineering Applicat…
Advanced Math
ISBN:
9781118141809
Author:
Nathan Klingbeil
Publisher:
WILEY
Advanced Engineering Mathematics
Advanced Math
ISBN:
9780470458365
Author:
Erwin Kreyszig
Publisher:
Wiley, John & Sons, Incorporated
Numerical Methods for Engineers
Advanced Math
ISBN:
9780073397924
Author:
Steven C. Chapra Dr., Raymond P. Canale
Publisher:
McGraw-Hill Education
Introductory Mathematics for Engineering Applicat…
Advanced Math
ISBN:
9781118141809
Author:
Nathan Klingbeil
Publisher:
WILEY
Mathematics For Machine Technology
Advanced Math
ISBN:
9781337798310
Author:
Peterson, John.
Publisher:
Cengage Learning,
